The Dallas-Fort Worth office market began to experience moderate investment movement in first quarter 2021, following impacts from COVID-19, according to Newmark research. A recent example is Heritage One and Two, a recently renovated 367,364-square-foot office asset at the convergence of the Dallas North Tollway and LBJ Freeway in Dallas, which recently sold for an undisclosed price. It was the first acquisition in Texas for Oregon-based Menashe Properties, which purchased the property without financing or partners.

Located at 4835 and 5001 LBJ Freeway, Heritage One and Two comprises two class-A office towers with garage and surface parking on a nearly 12-acre site. It is 75 percent leased to a diverse base of tenants that generate a strong in-place cash flow. The property offers significant upside potential through vacancy lease-up, mark-to-market of in-place rents and conversion of new leases to a triple-net structure.

Newmark’s Gary Carr, Robert Hill, Chris Murphy, John Alvarado and Chase Tagen represented the seller.

“This sale reflects strong demand for value-add properties in Dallas-Fort Worth that has increased post-COVID-19 and is bringing both first-time buyers and West Coast capital to the local market,” said Hill. “We saw competitive interest in Heritage One and Two driven by the property’s prominent location and proximity to shopping, dining and redevelopment.”

Heritage One and Two is surrounded by ongoing and planned mixed-use redevelopment, and is less than 30 minutes to Dallas/Fort Worth International Airport and Dallas Love Field.